March ISM Prints 61.2, In Line With Expectations Of 61.0, Lower From February 61.4, Prices Paid Surge Continues

Tyler Durden's picture

As usual the story remains the Prices Paid index, which increased again from 82.0 previously to 85, surging above expectations of 82.9. New Orders declined to 63.3 from Prev. 64.4, Employment rose again to 63.0 vs. 55.6 prior. Elsewhere, Construction Spending plunged to -1.4% on expectations of -0.2%, but it's an "improvement": last month's print of -0.7% was revised to -1.8%.

From the ISM press release:

WHAT RESPONDENTS ARE SAYING ...
  • "Customer orders have picked up nicely. [This is] likely in
    anticipation of increasing prices due to commodity costs that will
    likely happen over next month." (Food, Beverage & Tobacco Products)
  • "New orders continue at a robust pace this month." (Miscellaneous Manufacturing)
  • "What will be the impact to the U.S. supply chain after the devastation caused by the Japan earthquake?" (Chemical Products)
  • "The building side of our business is mired with little hope of a rebound anytime soon." (Fabricated Metal Products)
  • "Steel and certain steel products causing concern over price increases and availability." (Machinery)

More importantly, the Prices Paid index:

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